commercial metals BofA_05/08

CMC – Business Model

Vertical Integration

Product Diversification

Global Geographic Dispersion

Bank of America
BASics/Industrials Conference
Bank of America
May 7, 2008 BASics/Industrials
Conference

May 7, th Quarter 2007
CMC 42008

CMC – Track Record
CMC – A Global Steel and Metals Company
Conservative Company with a Strong,
Over 14,000 Employees Worldwide in 14 Different Countries
Experienced Management Team
Steel Minimills
30 Consecutive Years of Profitability
Steel Fabrication Plants
Steel Joist & Deck Plants
Build Markets, then Build Manufacturing/
CMC Manufactures,
Heat Treating Plants
Recycles, Markets Processing Operations
Steel Fence Post Mfg. Plants
and Distributes Steel
Steel Service Centers
and Metal Products Vertically Integrated: Scrap Processing and
and Related Materials Construction-Related Product Steel Fabrication are Hedges for the Steel
and Services Through Warehouses
and Copper Tubing Mills
a Network of Over 200 Copper Tube Minimill
Locations Worldwide
Marketing and Distribution Consistently
Metal Recycling Facilities
Marketing and Distribution Profitable
Offices
People Development
Bank of America Bank of America
Strategic Investments
BASics/Industrials BASics/Industrials
Conference Conference

CMC 4 2008 May 7, th Quarter 2007
CMC 42008

CMC – Five Operating Segments CMC – Strategy
Global Reach with a
CMC AMERICAS
Regional Focus
(1) Recycling
• All Recycling Facilities Including
7 Shredders Locations Throughout the
Longer Term, 50% of
Sunbelt; Significant Regional Processor
of Ferrous and Nonferrous
Revenues from Outside
(2) Mills
U.S.A. (Currently 60%
• 4 Steel Minimills (Long Products)
• Copper Tube Mill
U.S.; 40% Non-U.S.)
(3) Fabrication & Distribution
• Downstream Rebar Fab, Joist & Deck,
Construction-Related Products, Structural
Focus on Growth Markets / Regions
Fab, Fence Posts, Heat Treating
• Steel Import/Export Business

Geographic Diversification
CMC INTERNATIONAL
(4) Mills (Poland & Croatia)
Product Line Diversification
• Includes Captive Recycling Facilities
and Two Shredders
• Main Products: Rebar, Wire Rod, Merchants
(Poland); Pipe & Tube (Croatia)
(5) Fabrication & Distribution
• International Downstream Operations
• International Marketing and Distribution

CMC 42008

United States End-Use Markets Current Pricing
Product U.S. Poland
30% Public Infrastructure
REBAR
Heavy -Domestic $855+ ST $1,004 MT FCA
15%
Commercial
-Export – $1,060 MT FCA
15% Service Centers
BILLETS
Light -Domestic $700 FOB Mill $936 MT FCA
10%
Commercial
$900+ MT FCA
-Export $750+ FOB Mill
(Middle East)
5% Agriculture
SCRAP
5% Residential $460 MT
-Domestic $561 LT Shredded
Unprepared
OEM’s and
20% -To Turkey $680 MT CFR –
Other

CMC 42008

Outlook – North America Outlook – North America
Steel Long Products Ferrous/Nonferrous Scrap
Ferrous Scrap Pricing
Currently Non-Residential Construction Markets in the
Main Remain only Slightly Affected by Credit Implosion – Continued Solid Domestic Demand
– International Prices Rising
Anticipate 2008 Demand Similar to 2007 (Slightly Lower)
– Increase in Iron Ore Prices Supports Ferrous Pricing
Credit Debacle May Cause a Pause; Varies by Geography
All Factors Lead to Sustained Historically Higher
Customers Hate Uncertainty
Ferrous Scrap Prices
Rebar Imports 29% Reduction Year Over Year
Ferrous Scrap Prices Will Correct, But to a
– Weak U.S. Dollar
Higher Level
– High Ocean Freight Rates
Nonferrous Exports Active
– Better International Prices
Copper Pricing
– Concerted Government Effort Not to Export – China/India
– Always a Good Global Economic Barometer
With Lead Times, Earliest Date Import Trend Could
– Strong Above $3/lb.
Reverse is Late Summer
Service Centers Low Inventory Levels; Showing Discipline

CMC 42008

Outlook – Poland/Croatia - CEE Outlook – China
Strong Demand in Neighboring Markets
Steel Consumption Higher than GDP
Imports Not Attracted to Polish Market
Domestic Steel Prices Rising
Prices Increasing
Government Focus
Anticipate Strength Through Spring / Summer 2008
– Energy & Environment
New Polish Government – Pro Business
– Control Inflation & Speculation
From Poland Through to Russia, Construction – Reduce Further Steel Exports
Markets Should Remain Strong. – Rate of Steel Capacity Expansion Slowing
Croatia - Turnaround


CMC 42008

Outlook – China Summary – Outlook 2008
Positives – U.S.
2007 Net Finished Steel Exports 46 Million Tonnes
– Exports 63 Million Tonnes
U.S. Steel Prices Lowest in the World
– Imports 17 Million Tonnes
Declining Steel Imports
2008 Anticipate 30% Reduction in Net Exports
Weak U.S.$ Barrier to Imports
– Removal VAT Tax Rebates / Increased Export Taxes
– High Bulk Freight Rates High Ocean Freights Also a Barrier to Imports
– Protective Measures – U.S. / EU Low Inventory Levels – Mills/Service Centers
– Currency Appreciation
Ferrous Scrap Prices at All-Time Highs;
– Higher Raw Material / Energy Costs
Will Correct at High Levels
– Shift from Low Value to Higher Value Products
Supply Driving Up Steel Prices
– Reduced Production at Smaller / Medium-Sized Mills
Rebar/Merchant Bar Margin Spread Well Over
Impact of Reduced Chinese Steel Exports
$300/Ton
– Higher Prices in Asia & Internationally
Non-Residential Construction Remains Good
Chinese Steel Inventories Are Low

CMC 42008

Summary – Outlook 2008 Investor Information
Positives – Global Non-GAAP Financial Measures
and Regulation G
Global Infrastructure Activities Strong
Global Economies, in Particular Emerging,
are Very Good
This written and verbal presentation may use financial
China Has Increased Export Taxes on Most
statement measures considered non-GAAP financial measures
Steel Products
by the Securities and Exchange Commission (SEC).
In compliance with the SEC’s Regulation G, we have
China Net Steel Exports Likely to be Reduced by
provided on our web site at
30% in 2008 (Impact 12-15 Million MT)

www.cmc.com
Iron Ore Contract Prices Increase 65% from
April 1, 2008
Higher Iron Ore Prices Cause Ferrous Scrap a reconciliation to the most comparable GAAP measure and
Prices to Rise and Result in Higher Steel Prices other information that may be of interest to investors.
Global Steel Prices Have Risen Sharply in Recent
Weeks; Likely to Stabilize at Higher Levels.

CMC 42008

Forward-Looking Statements
This written and verbal presentation may contain forward-looking
statements regarding the outlook for the Company's financial results
including net earnings, product pricing and demand, production rates,
inventory levels, impact of acquisitions, credit conditions and general
market conditions. These forward-looking statements generally can be
identified by phrases such as the company or its management “expect,”
“anticipates,” “believe,” “ought,” “should,” “likely,” “appears,” “projected,”
“forecast,” “outlook,” “will” or other words or phrases of similar impact.
There is inherent risk and uncertainty in any forward-looking statements.
Variances will occur and some could be materially different from
management's current opinion. Developments that could impact the
Company's expectations include construction activity, difficulties or delays
in the execution of construction contracts resulting in cost overruns or
contract disputes, metals pricing over which the Company exerts little
influence, interest rate changes, increased capacity and product availability
from competing steel minimills and other steel suppliers including import
quantities and pricing, court decisions, industry consolidation or changes in
production capacity or utilization, the ability to integrate acquisitions into
operations; global factors including political and military uncertainties,
credit availability, currency fluctuations, energy and supply prices and
decisions by governments impacting the level of steel imports and pace of
overall economic activity, particularly China.
Bank of America
BASics/Industrials
Conference

CMC 4 2008

CMC – Core Values
Integrity & Honesty
Respect for the Individual
(The CMC Way)
Background Info Conservatism in Business Conduct
(Doing it the Right Way)
Highest Ethical, Moral &
Legal Standards


CMC 42008

CMC – People United States End-Use Markets
% Market Uses Product
Safety
30% Public Infrastructure Roads; Bridges Rebar
2007 – Americas Minimills
High Rise; Industrial;
Rebar;
• #1 CMC Steel Arkansas 15% Heavy Commercial Utility; Education;
Merchant
Healthcare
• #2 CMC Steel Alabama 15% Service Centers Service Centers Merchant

• #3 CMC Steel South Carolina Strip Shopping;
10% Light Commercial Joist; Rebar
Parking; Stand Alone
Retail
• #5 CMC Steel Texas
5% Agriculture Fencing; Stakes T-Posts
Safety Committee
Single/Multi Family;
5% Residential Rebar
Condo
“Achievement of a Consistent Safety Performance
at all CMC Locations” 20% OEM’s and Other Various Merchant

CMC 42008

Financial Performance
Earnings Per Share
Growth
Net Earnings
Net Sales
($ Millions)
($ Billions) $3.50
$3.50
9 400 $3.00 $3.00
8 350 $2.50 $2.50
7 $2.00
$2.00
300
6
$1.50 $1.50
250
5
$1.00 $1.00
200
4
$0.50 $0.50
150
3
$0.00 $0.00
100
2 2003 2004 2005 2006 2007
50
1
0 0 Bank of America
BASics/Industrials
'03 '04 '05 '06 '07 '03 '04 '05 '06 '07 Conference

CMC 42008

Dividend Payout Per Share
Quarterly Earnings Per Share
(by Fiscal Year)

0.48
$0.50
$1.25 $1.25 $0.45
$0.40
$1.00 $1.00
$0.35
$0.30
$0.75 $0.75
$0.25
$0.20
$0.50 $0.50
$0.15
$0.10
$0.25 $0.25
$0.05
$0.00
$0.00 $0.00
2003 2004 2005 2006 2007 Current
2Q07 3Q07 4Q07 1Q08 2Q08
Annual
Rate

CMC 42008

Investments
5 Year Cumulative Total Return ($ in Millions)
(Fiscal Years)

Comparison Among CMC, the S&P 500 Index and the S&P Steel Index 494
Sisak & Other Acq.
500 Mills – AZ & Poland
CMC
$650 CMC
450
SAP
S&P 500
S&P Stl Ind 400
$550
CapEx
S&P Stl Ind
350
$450
300
206
250
$350

200 131
$250
110
150
S&P 500
52
50
$150 100
50
$50
0
2002 2003 2004 2005 2006 2007
2003 2004 2005 2006 2007 Projected
2008
2002 2007 Bank of America
BASics/Industrials
Commercial Metals Company $100.00 $648.86 Note: Excludes Acquisitions, Except for 2008
Conference
S&P 500 $100.00 $176.25
CMC 42008
S&P Steel Industry Group $100.00 $561.57

Adjusted Operating Profit
by Segment

9% 4% 20%
9% 17% 11%
18% 9%
17% YTD 17%
15%
20%
2006 2007 2008
40% 50%
44%

Americas Fab
Americas International Fab
International
Americas
& Distribution
Mills
Recycling & Distribution
Mills

Note: 2008 for six months YTD 2/29/2008

commercial metals BofA_05/08

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